This quiz works best with JavaScript enabled. Home > Finance > Markets And Institutions > Financial Markets And Institutions > Financial Markets And Institutions – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Markets And Institutions Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which among the following is NOT a valid stock exchange? A) KOSPO. B) HOPE. C) S & P. D) Nikkei 225. Show Answer Correct Answer: A) KOSPO. 2. What theory argues that stocks are always priced about right and bargains are hard to find because they are so closely watched by so many investors? A) Efficient Market Hypothesis. B) Theory of Demand. C) Theory of Bull Markets. D) Wall Street Hypothesis. Show Answer Correct Answer: A) Efficient Market Hypothesis. 3. What does "SEC" stand for? A) Southeastern Conference. B) Securities and Energy Commission. C) Securities and Energy Commission. D) Securities and Exchange Commission. Show Answer Correct Answer: D) Securities and Exchange Commission. 4. What are these? NYSE-NASDAQ A) Stocks. B) Markets. C) Stock exchanges. D) Securities and exchanges. Show Answer Correct Answer: C) Stock exchanges. 5. For a firm to have its securities listed on an exchange, it must meet certain requirements. These usually include measures of profitability, size, market value, and public ownership. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 6. An index fund is: A) A fund which can be traded in an exchange. B) A fund which is passive. C) A fund which is active. D) A fund with higher fees. Show Answer Correct Answer: B) A fund which is passive. 7. Type of bonds that pay coupon interest are classified as A) Payment bonds. B) Interest bonds. C) Forward bond. D) Coupon bond. Show Answer Correct Answer: D) Coupon bond. 8. A nonprofit service that accepts deposits, makes loans, and provides other financial services is known as a A) Bank. B) Credit Union. C) Stockbroker. D) Life Insurance Company. Show Answer Correct Answer: B) Credit Union. 9. The physical place where buyers and sellers meet to trade stocks is known as the A) Stock or securities exchange. B) Equities trader. C) Brokerage desk. D) Trading floor. Show Answer Correct Answer: A) Stock or securities exchange. 10. A treasury bill is an instrument of: A) Dividend. B) Short term debt. C) Long term debt Interest. D) None of above. Show Answer Correct Answer: B) Short term debt. 11. The length of time you need to work at a company before you can take the employer's matching contribution with you is known as A) Diversification. B) 401(k) plans. C) Mutual funds. D) Vesting. Show Answer Correct Answer: D) Vesting. 12. Which is not a regulatory function of SEBI? A) Calling for information. B) Controlling Insider Trading. C) Registration of market players. D) Regulation of intermediaries. Show Answer Correct Answer: B) Controlling Insider Trading. 13. In a private placement, the securities are offered and sold to a limited number of investors. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 14. What is the term describing an overall decrease in stock prices? A) A bear market. B) Market diversification. C) Market capitalization. D) A bull market. Show Answer Correct Answer: A) A bear market. 15. What is the main advantage of a mutual fund for an investor? A) Its price doesn't change much. B) It offers diversity in investment. C) It has a set maturity date. D) It can be sold at a profit. Show Answer Correct Answer: B) It offers diversity in investment. 16. The minimum period till which a debt instrument must be retained in order to qualify as Long Term is: A) 2 year. B) 3 year. C) 4 year. D) 1 year. Show Answer Correct Answer: B) 3 year. 17. Instruments traded in Capital Markets are ..... A) Bonds. B) Debentures. C) Equity Shares and Preference Shares. D) All of these. Show Answer Correct Answer: D) All of these. 18. The primary market is also called A) Stock exchange. B) IPo. C) New issue market. D) Over the counter market. Show Answer Correct Answer: C) New issue market. 19. Hedging and speculative investments are the key characteristics of A) Commodity market. B) Share market. C) Money market. D) Both (a) and (b). Show Answer Correct Answer: D) Both (a) and (b). 20. The main characteristics of money market transactions which enables it to have active secondary market are: A) Securities that trade in one year or less. B) Securities that are of large denomination. C) Securities that are very liquid. D) All above. Show Answer Correct Answer: D) All above. 21. Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach? A) C. Financial markets. B) B. Primary market. C) A. Secondary market. D) Money market. Show Answer Correct Answer: C) A. Secondary market. 22. Kimchi Premium is: A) Premium in gold trading in South Korean exchange vs Rest of the World. B) Premium in debt trading in South Korean exchange vs Rest of the World. C) Premium in cryptocurrency trading in South Korean exchange vs Rest of the World. D) Premium in equities trading in South Korean exchange vs Rest of the World. Show Answer Correct Answer: C) Premium in cryptocurrency trading in South Korean exchange vs Rest of the World. 23. Bonds and shares are traded in A) Forex markets. B) Money markets. C) Capital markets. D) Product markets. Show Answer Correct Answer: C) Capital markets. 24. Treasury bills are also known as: A) Flat Rate Bonds. B) Low-Interest Bonds. C) Fixed interest Bonds. D) Zero-Coupon Bonds. Show Answer Correct Answer: D) Zero-Coupon Bonds. 25. A bonus share announced by a company: A) Reduces the free float of the company. B) Decreases the EPS. C) Increases the EPS. D) Increases the profit made by the company. Show Answer Correct Answer: B) Decreases the EPS. 26. Which of the following are the instruments of money market? A) Call money. B) Certificate of deposits. C) Trade bills. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. Primary and secondary markets: A) Function independently. B) Control each other. C) Complement each other. D) Compete with each other. Show Answer Correct Answer: C) Complement each other. 28. Secondary market deals with the ..... of existing securities. A) Purchase-sale. B) Sale. C) Stock. D) Purchase. Show Answer Correct Answer: A) Purchase-sale. 29. The market for buying and selling of commercial Bills of Exchange is known as a ..... A) Treasury Bill Market. B) Commercial Paper Market. C) Commercial Bill Market. D) Capital Market. Show Answer Correct Answer: C) Commercial Bill Market. 30. Primary market is a market where securities are traded in the A) Second Time. B) Three Time. C) Several Times. D) First Time. Show Answer Correct Answer: D) First Time. ← PreviousNext →Related QuizzesMarkets And Institutions QuizzesFinance QuizzesFinancial Markets And Institutions Quiz 1Financial Markets And Institutions Quiz 2Financial Markets And Institutions Quiz 3Financial Markets And Institutions Quiz 5Financial Markets And Institutions Quiz 6Financial Markets And Institutions Quiz 7Financial Markets And Institutions Quiz 8Financial Markets And Institutions Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books